The Korea Federation of Small and Medium Enterprises said on the 18th it will run a "recommendation relay for mutual aid fund enrollment" through the 30th of next month.
The mutual aid fund for small and medium-sized enterprises is the only loan mutual aid program in Korea dedicated to small and medium-sized enterprises, introduced in 1984. Enrolled corporations can borrow short-term operating funds up to three times the balance of their paid-in installments without a guarantor or collateral. If real estate is provided as collateral, the loan limit increases to up to 10 times the installment balance. Using local governments' interest subsidy support can also lower interest burdens.
In this event, existing enrollees who recommend new enrollees and complete the enrollment process during the event period will receive a 50,000 won Naver Pay gift certificate for both the recommender and the new enrollee. Multiple participation is allowed by recommending several firms or by having a firm that enrolled through a recommendation introduce another firm in turn.
Amid high lending rates for corporations due to factors such as recent base rate hikes, the mutual aid fund has frozen lending rates since July last year. As of the end of July this year, new enrollments in the mutual aid fund totaled 2,617, up 48% from 1,766 in the same period last year.
Lee Chang-ho, head of the mutual aid business unit at the Korea Federation of Small and Medium Enterprises, said, "Amid recent sluggish domestic demand, the mutual aid fund has been a reliable support during crises for small and medium-sized enterprises and small business owners," adding, "Through this recommendation relay, we hope many small and medium-sized enterprises can receive practical financial support within the fund's management safety net."